Posts Tagged "incubator"

Silicon Valley, and much of the startup community, has been enthralled with software for years, but the tides are turning and hardware startups are gaining momentum. Investors are taking hardware startups serious—since 2010, venture capital investment in hardware startups is up more than 30x (Tech Crunch). Venture capital investment in connected device hardware startups reached approximately $1.48 billion in 2014, more than triple the amount of two years earlier.

A New Wave Of Opportunity

Advances in technology, coupled with hardware accelerators and incubators, are ushering in a new wave of opportunity for hardware entrepreneurs. Creating a functional prototype is no longer a hassle thanks to design software advances and 3D printing technology. Entrepreneurs are able to design and develop prototypes in a matter of days instead of months. After the prototype is complete, many of these hardware incubators and accelerators then help turn this prototype into a working, production-ready product within a matter of months.

By reducing the product development timeline, startups are able to get their idea built, tested, manufactured and on to store shelves much faster than we have ever seen before. Fitbit, Nest and GoPro are prime examples of companies that have paved the wave for hardware startups and demonstrated to investors that there is tremendous profitability in this startup segment. While distribution and manufacturing still have their inherent challenges for hardware startups, they are becoming more and more accessible.

Reaching Out To The Crowd

Hardware startups are tapping into their network and reaching out to the crowd. While crowdfunding has continued to revolutionize investing as we know it, hardware startups are reaping the benefits. A quick search on Kickstarter shows you that there are hundreds of hardware startups at any given time searching for funding. One of the most notable, The Coolest Cooler, raised $13 million (26x their funding goal) in 2014. Reaching consumers used to be a challenge, but that is no longer the case. Crowdfunding is not only helping raise capital, it is also validating ideas and build a relationship with consumers early-on.

An Exciting Future

“When building a new hardware product becomes as easy as making an iPhone app, we will have truly ushered in a golden era of innovation.” Hardware startups are playing a critical role in making the new industrial revolution a reality. As barriers to entry continue to diminish, we will begin to see more hardware startups debut and increased investor activity.

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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.

Launching a startup? Scaling your current business? There are tons of resources available to entrepreneurs out there. However, finding the exact resources to fit your precise needs can be slightly more challenging. Business accelerators, incubators and co-working spaces all offer similar services with slight ‘tweaks’, the lines between them get blurry. We have defined each below to help you make an informed decision on what is best for your business.

Accelerators

Time is of the essence with accelerators. With experts by your side, accelerators aim to launch your startup in a matter of weeks or months, instead of years. Traditionally there is an application process that an entrepreneur is required to complete before being accepted into an accelerator program. However once you are accepted, you are thrown onto the fast track of scaling your business. The product development timeline is drastically reduced, which makes the incubation period very short and intense. Accelerators aim to turn business ideas into prototypes or products that are ready to go to market quickly—mere months. Sponsors provide initial funding and expertise to small groups that can demonstrate a great product idea. In return, the sponsors take a small equity stake in the new business, on average less then 10%.

With business accelerators the emphasis is on rapid growth and a successful product launch. At the end of the period, the entrepreneurs have the opportunity to make a pitch to venture capitalists to obtain further funding. A business accelerator is therefore more suitable for startups that want to reduce time to market, rather than grow gradually.

Incubators

Business incubators provide businesses with office space and shared facilities, such as telecommunications systems and internet connections, in a dedicated building. Entrepreneurs can access advice and guidance from professionals such as accountants, marketing consultants and business advisers who are associated with the incubation center and act as mentors. Entrepreneurs typically stay in an incubation center for three to five years, although there is no minimum or maximum period.

New businesses find that rents are lower in incubation centers—typically 25 to 50 percent less than commercial rents, depending on the region you are in. They benefit from networking opportunities, the mentoring and professional advice available and the contacts with other entrepreneurs that provide a stimulating environment for growth.

Co-Working Space

Technology advances mean that you no longer need to be tethered to a single office to get work done. Co-working spaces offer cheap office space and business facilities for entrepreneurs, but more than that, they provide the opportunity to ‘rub elbows’ with other entrepreneurs and freelancers. The networking opportunities are vast. Similar to accelerators and incubators, there is access to basic shared office facilities and mentors in various fields. Many of the people in co-working spaces find it inspiring to work around other like-minded entrepreneurs.

Co-working spaces offer flexibility and the least amount of structure out of the three options. These spaces can accommodate a growing team and don’t require a firm lease commitment like traditional office space. Many co-working spaces are funded through memberships, however, there are a few out there that are free (i.e.Gangplank).

Please feel free to send any additional questions you may have to info@3d-innovations.com. We look forward to chatting!

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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.